Venezuela: Central Bank of Venezuela Regulates Interest Rates

In brief

The Central Bank of Venezuela (Banco Central de Venezuela (BCV)) issued Ruling No. 25-12-01 (“Ruling”)¹ on 4 December 2025, establishing the regulatory framework for determining active and passive interest rates, as well as the mandatory use of the credit value unit (Unidad de Valor de Crédito (UVC)) as the indexation mechanism for loans granted by the national banking system.

The Ruling entered into force two banking business days after its publication in the Official Gazette (i.e., 21 January 2026) and repealed Ruling No. 22 03 01.²

In more detail

The following are the most relevant aspects of the Ruling:

1. Loans subject to the Ruling must be expressed in UVC, which is calculated by dividing the amount in bolivars by the Investment Index (IDI) published daily by the BCV.
2. Loans granted under the National Productive Unified Portfolio must carry an annual interest rate of 12% on the balance expressed in UVC. However, loans granted to productive sectors developed by women are subject to an annual interest rate of 6%.
3. Banking institutions must charge an annual interest rate between 13% and 16% for commercial loans and microloans. Loans granted to employees and executives of banking institutions are excluded.
4. The minimum interest rate applicable to credit card loans with a line of credit equal to or greater than 20,400 UVC must be 13%. This rate also applies to other consumer loans whose amount is equal to or greater than the limit established for credit cards.
   If the loan has a line of credit below 20,400 UVC, banking institutions must charge an annual interest rate that does not exceed the rate applicable to active credit card operations published by the BCV.
5. Banking institutions must submit contractual models that incorporate specific conditions, such as the following, to the Banking Authority (SUDEBAN) for approval:
   1. Installment payments that include principal and interests expressed in UVC
   2. For loans granted under the National Productive Unified Portfolio: a special charge of 20%, also expressed in UVC, at the time of settlement
   3. The borrower’s right to prepay without penalty, with immediate effect and at the borrower’s discretion
   4. A detailed explanation of the method of calculating, expressing and valuing credit in UVC
6. Banking institutions may charge the following surcharges for default obligations:
   1. For loans expressed in UVC: a maximum additional surcharge of 0.8% annually
   2. For loans not expressed in UVC: a maximum surcharge of 3% annually
7. The Ruling prohibits banking institutions from paying an annual interest rate lower than 32% (calculated on the daily balance) on savings deposits. Additionally, for time deposits and for operations involving certificates of participation, banks are required to pay a minimum annual rate of 36%.
8. The Ruling sets the BCV’s annual interest rate applicable to discount, rediscount and advance operations at 19.2%. This rate may be reviewed periodically by the BCV Board.
9. Loans under the National Productive Unified Portfolio granted before the Ruling entered into force will maintain the conditions under which they were originally agreed until they are fully repaid.

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Download the Spanish version of Venezuela: Central Bank of Venezuela Regulates Interest Rates.

1 Published in Official Gazette No. 43.298 on 19 January 2026.

2 Published in Official Gazette No. 42.341 on 21 March 2022.